The central challenge for Bulgaria’s labor market is the ongoing demographic crisis, which is expected to intensify in the coming years, creating an acute shortage of workers. This was emphasized by Irena Joteva, managing partner at HILL International BG, in an interview with BGNES. Joteva, who has been with the company since 2002, noted that the labor market in Bulgaria has undergone two significant phases over the past two decades.

From 2000 to 2010, the market expanded rapidly in preparation for Bulgaria’s EU accession, attracting international companies and increasing demand for labor. The 2008–2009 global economic crisis affected Bulgaria slightly later, hitting hardest around 2010–2011, but the country managed to recover within a few years. The second phase, between 2011 and the start of the pandemic in 2020, saw a boom in outsourced services, though the shortage of labor became more pronounced due to emigration and demographic decline. The pandemic itself, along with subsequent global disruptions such as the war in Ukraine, inflation, and rising energy costs, further reshaped the market, accelerating structural changes in companies and work practices.

Today, Joteva stresses, the lack of personnel is the primary concern for almost all businesses. While some Bulgarians who studied or worked abroad are returning, particularly younger professionals with several years of experience or older individuals returning to care for family, this trend is insufficient to fully resolve the labor gap. Many returning workers have established lives abroad, which limits the long-term solution.

Salary growth, social benefits, and other incentives have improved Bulgaria’s appeal for returning workers. By late 2024, the labor market was short by at least 260,000 people, particularly in lower-skilled roles such as construction, tourism, logistics, transport, and cleaning. Shortages are also acute in health care and education. Looking forward, the market will demand both low-qualified workers for industrial and service roles and highly qualified professionals in IT, product development, green energy, AI, health care, and teaching, with growing interest in social work and mental health services.

Remote work has become a key feature for certain professions like IT, consulting, and media, but in roles requiring physical presence, such as manufacturing or retail, it is unfeasible. Joteva notes that while remote work benefits concentration-based tasks, it reduces social interaction and skill-building.

Generation Z is already reshaping the labor market with distinct expectations. They seek flexible hours, online and home-office opportunities, and work with meaningful impact in areas like ecology and sustainability. Their communication style is predominantly digital, preferring messaging over phone calls, and they are highly capable of accessing and processing information quickly. While their tenure at individual jobs may be short, they prioritize purpose-driven employment and flexibility over traditional structures.

Source: BGNES interview